I am starting this thread to share my trading system.
THis system requires at times a huge amount of drawdown.
It is OBVIOUSLY VERY RISKY.
I do NOT use Stop LOSSES (and DO NOT recommend anyone trade this way!)
I will try to recap the rules or guidlines as to what I do and use and I will show my trades if need be. But it is a realitively easy system.
I expect many subscribers to this thread.
All I ask is that everyone be nice and treat everyone with the human dignity they deserve.
I will try to keep my posts on topic as much as possible without getting boring.
I do not trade forex for others. I have no commercail forex or forex trading involvement. I am not try to sell anyone anything or CONVINCE anyone of anything.
I can tell you what history is. I only trade GBP/JPY (GJ) these days.
I will try to detail the system over the next few posts before the posts get out of control here.
I ONLY buy GJ long mainly because of the greta interest on trades carried overnight. On average I make about 30% per month on the margin I have securing my trades.
Smart Margin Management is required with this system. I normally stay between 1% and 3% on USED margin. This is very important as you need to be able to stay in on a huge run down (crazy as it seems this works).
I have been doing this for months and trading forex for 3 years.
Yes I have wiped out all sorts of accounts. I even wiped my account this way once because I had what I call âtoo many too highâ (TMTH)
AND I ran out of margin due tofoolish margin management AND my broker charged my credit card for a forex account deposit but wouldnât put the money in my account to cover my margin call because I already had put in $5000 that month in credit card deposits and they stictly limit people to this limit. The only broker I found who doesnât honor this $5K CC depoosits a month (even though thier website says they limit you) is forex.com
but you cannot trade this system there.
This system requires a broker who does not stick you with FIFO
(first in first out) YOu need to be able to sell any and or all of your longs at any price and in ANY order you want. IF they force you to sell your oldest long this system will not work at that broker.
THis system works under any leverage, but I prefer 400:1 as I earn the same interest as if I was playiong 200:1, so why invest extra money?
DO NO TRADE THIS SYSTEM ON A LIVE ACCOUNT, UNTIL YOU HAVE TESTED IT AND MASTERED IT ON A DEMO ACCOUNT WHERE YOU HAVE NO REAL MONEY AT RISK.
except when I get in at market wiuth a âloss leaderâ.
Or when I am manually scalping in range while holding longs higher.
MY loss leader is MY first order. I call it a loss leader because EVEN before this loos leader hits your TP target you should be able to close it for a loss if you want too and still be WAY up pips wise.
I have an old loss leader now at 209.63
and all my longs are now:
208.09 207.99 207.79 207.70 207.59.
All these have mostly either a 21 or 31 pip TP limit order set to sell when it hits the target. I will hold these longs forever if I need too. They will earn me lieterally 30% a month interest. MB trading told me they were unaware of anything requiring me to sell my longs after any set time. Forex is spot market and unlike futures you cannot run me out of time. In FOrex you can only run me out of money,
which if I manage my MArgin smartly, it will be almost impossible for you or anyone to do this.
Microlots may be in order for some people. The point is I gernerally trade a boatload of orders, and I TP on 100% or ALL orders entered.
Bear with me here if you donât understand, soon there will be all sorts of new people here to help me explain some of this basic stuff.
This is a long term very profitable equity building system that WILL NOT
wipe you out in the end unless that is your goal.
I am buying all the way down. From the orders I currently have I am scaling down now every 10 pips entering my limit long entries IN ADVANCE.
Normally only a fool buys at market. The smartest trader waits for the market (price to vome to him)
Pateince is key. WHat I describe is not a theory. ANd many folks may not agree. But I believe it is a matter of fact and here it is.
Everythign returns to its original source. It is like a circle or can be though of as a cycle.
Some call what I do grid trading. I am not farmiliar with grid trading.
I buy on the 9âs and sell on the 0âs. I have never learned grid trading and this system is the work of over 3 years of watching GJ chrats.I have played many other pairs over the years, but this beast is the most fun and most exciting and the most financially rewarding.
I am already in deep here but she is coming up in the long run.
So I am buying every 10 pips on the way down on the 9âs into 206.50 if it gets that low.
It is likely that 207.00 will hold. AT which time I will have GJ longs every 10 pips with TPS set at either 21 or 31 pips.
My old cycle completed at least one on my other account from April3- 28th
I have went back to my original FXSOL account. I still have accounts at MB,forex.com and FXSOL. pfgbest was my old account and I think they are pretty good but they dont allow you to deposit money on a credit card or a debit card. I detest mailing money and waiting forever for credit. I also donât want to pay wire fees.
I will monitor progress here on my trades and answer any questions anyone has about the system.
Here is my previous post from one of those other forums I wonât mention by name:
HeyâŚI am wondering how it is possible to âmake sure you are flatâ before the news? Does this mean to not place too many orders too far down? I have a string going all the way to 206.09. Is this bad?
AlsoâŚdonât we want the pair to move down? Are you saying that the news will drive it down not to return to the 208 area?
If we should be flat by Wednesday, should we not be placing trades close to 208?
When we hit 208 on the bid I closed for a 1 pip profit on my loss leader 207.99.
But my point is and part of calling it a loss leader is this.
You really dont have to make 100% profits on your trades unless you are OCD
(wont mention any names here).
I sat with my last one (a 207.99 for hours).
I got to within 9 pips of breaking even before it fell and rose again.
But any time I could have closed that âloss leaderâ for a loss
if I couldnt wait to complete above 208. I did close at 208 for a 1 pip profit. But I sure could have held it for 15 more minutes for 31 pips profit like it was originally set to.
The thing is while I Was sitting with that last one I was up on 641 out of 638 trades or something and had banked pips of OVER 9000, WHo care if I even gave them 20 pips back?
I must not have said that right. After my very successful run last night I ended up flat this morning. I started to place new buy limit orders starting at 207.79 (actually I did two before that that quickly profited.) Since the pair has been moving down and I am not at home I am just automatically picking up open ended trades every ten pips from 207.79 (which probably wasnât even triggered.) I do not know if any have recycled back up to TP. Maybe some have. But I am on autopilot now until I get homeâŚfigure a bunch of these are in position right now creating our coveted profit making drawdown!!
I am just worried, after your posts about the drop due to news, that we will not be coming back up this high (208). You said to âtry to be flatââŚhow do you try to be flat? If it keeps dropping, simply stopping your buy limit orders will not help the ones already opened to close. It will stop the drawdown, but not help you go flat. The only thing I think you might mean by that is to not place the buy limits too close to the top (208). That is why I asked if I was OK to start that highâŚ
And 25 bps aint that much. The dollar is hugely oversold
and sure did rally last week. I am still bullish GJ LT. 207.30 aint too bad
You are less than 100 pips down. Wait until you go down 5 figures+ on several. The trick is to pick the pips and build them up and be like a bank having orders at all prices for sale. As long as you are using smart margin management you will be ok. All LT charts look bullish still. SO the news is just going to cause some drawdown before it retraces back up,
the point it you want to get in LONG as low as you can, and before a NFP
THat is likely to rock price down 100 pips, it would beehove you to wait and not âwasteâ those pips. Thats why I dont like buying high on the way up.
~
not have said that right. After my very successful run last night I ended up flat this morning. I started to place new buy limit orders starting at 207.79 (actually I did two before that that quickly profited.) Since the pair has been moving down and I am not at home I am just automatically picking up open ended trades every ten pips from 207.79 (which probably wasnât even triggered.) I do not know if any have recycled back up to TP. Maybe some have. But I am on autopilot now until I get homeâŚfigure a bunch of these are in position right now creating our coveted profit making drawdown!!
I am just worried, after your posts about the drop due to news, that we will not be coming back up this high (208). You said to âtry to be flatââŚhow do you try to be flat? If it keeps dropping, simply stopping your buy limit orders will not help the ones already opened to close. It will stop the drawdown, but not help you go flat. The only thing I think you might mean by that is to not place the buy limits too close to the top (208). That is why I asked if I was OK to start that highâŚ
Collect your interest. If it gets way down maybe buy some more if you are sure it is the bottom and you have room. You have to be very careful about overextending yourself. That is what 4 out of 5 banks are now doing.
This is where Smart margin management comes in. Iâm pushing it now at like 2.76% but I am in a different account with a lower balance.
You need room to be able to scalp them for at least one or two lots (any size)
WHile you have longs higher waiting to hit TPâs even higher. You build pips slowly sometimes. And as drawdown stays rangebound you keep making pips scalping building your equity.
So on Baby Pips forums we canât edit a user title (although I see rrram has âNewbieâ as his) or have âsignatures.â HmmmâŚam I missing something in the features here?
I am ashamed to admit I put a short in at 207.30. Of course it hit and is headed back up rather than down. This short is part of my âoriginalâ trading styleâŚexpecting a down turn for at least a few pips. Now I wish I didnât do it! I am still buying limit ordersâŚif I were at home I would have reset the ones that got triggered and closed when GJ went down to 207.10 or so and back up 40 pips. This is where the bank is solidifiedâŚlike in Monopoly whenever you pass over Boardwalk you pay the ownerâŚhaâŚ
Looking forward to the run down and run back up. I am a fellow troll (Elijahâs metaphor, not mine, but I like it!) taking the toll on the pip bridgeâŚ
